In 1930 the U.S brought in the Smoot-Hawley Tariff Act. This act raised barriers against more than 20,000 imported goods. Countries around the world quickly retaliated with high tariffs on products from the U.S. As a result, world trade dropped off in alarming numbers.

Years later, the effects of these protectionist moves were studied and yielded very interesting results. In the short term, these measures worked. In the long term, they served only to worsen the effects of the depression which impacted productivity and resulted in lower living standards for U.S. citizens. The U.S suffered measurably by retreating from international competition and adopting economic isolationist policies. The cost to society in the U.S. was not worth the price of the short-term benefits of nationalistic policies.

The benefits of free trade and open-door trading policies are manifest. They help raise the standard of living, promote increased productivity and aid in reducing poverty.

President Obama, no stranger to the lessons of history, might well take heed of the lessons taught by the consequences of the Smoot-Hawley Tariff Act.